Skip to main content

Essential Of building Wealth - Post 3

In the last post we had discussed about how to segregate your expenses based on 80/20 principle.

In this post we will discuss on how to handle the expenses that account for 80% of your expense

Credit Card Debt :Check out for any outstanding credit card debt that you are serving. If so, the Credit Card debt should be cleared as soon as possible. This is because of the high rate of interest that you will be levied in case of default. Also this would lead to a poor credit rating for yourself which can become an issue if you want to get loans (Housing Loan/Education Loan).

Home Loan/Education Loan : If you are servicing any loan ,You should have a plan of when to close it out. HAVE A PLAN TO SEE YOUR DEBT MELT.One rupee paid today on the loan would at a minimum the reduce the Total Loan by at least two rupees at the end of your tenure. So, Divert the additional cash that you may get, however little it may be into the payment for loan.

House Rent: If you live in a rented home, Home rent would form a bulk of your expense with a potential rise in every year. My personal advice would be to take a decision as soon as possible on if you want to continue to be in a rented house or to buy a home for yourself. DON’T DELAY THIS DECISION as its always sooner to buy a home than later. At a minimum, You should have a plan an year early if you are going yo buy an home for rent avoidance.

Labels:

Comments

Post a Comment

Popular posts from this blog

How to live on 24 hours a day

Arnold Bennett was a prolific author in the early 20th Century. I read his book "How to live on 24 hours a day" He explains his process in his book : that resulted him in being a prolific author: following are the learning: even in the busiest week, find 7-1/2 hours of time beyond the work ; Focus those 7-1/2 hours on thinking Time practice honest self-reflection using the below questions: what do want for yourself? what motivates you? what scares you? what embarrasses you? What are you proud of? What beliefs do you have that might be wrong? Are you caring for yourself or harsh with yourself? Authors Arnold Bennett      
Post a Comment
Read more

Repeat the Basics!

When you repeat the basics You don't only become great - you will stay great! -Darius Foroux Repeat 🔂 the basics of many things in your Life: 1. Fitness - Walking  2. Philosophy - read your favorite Author - everyday! 3. Kindness - random act of giving  4. Business -  What is the purpose of business? 5. Writing  -  Read the "The Elements of Style - Strunk & White"  Its very simple : Figure out the basics of the given field : 5-6 principles And repeat them day after day Back to the Basics! If you do so , you will lead a life with chronic White-belt mentality 😅 leading to Humility  even if your performance is that of a Master Black-belt! If you do so,  you not only become an expert of the field you will stay as one!
Post a Comment
Read more

Focus

  Focus on 30 minutes at a time on a given topic with concentration The Human Machine Arnold Bennett My Habits: 30 minutes of walking 30 minutes of reading 30 minutes of Yoga 30 minutes of reflection 30 minutes of focus on each task -with concentration Say to your brain - FROM 9:AM TO 9:30 AM THIS MORNING YOU MUST DWELL WITHOUT CEASING ON A PARTICULAR TOPIC THAT I WILL GIVE YOU Authors Arnold Bennett      
Post a Comment
Read more